AN ACT making an appropriation from the
state general fund to the legislative fund.

[Approved March 30, 1984]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE

AND ASSEMBLY, DO ENACT AS
FOLLOWS:

Section 1. There is hereby
appropriated from the state general fund to the legislative fund existing
pursuant to the provisions of NRS 218.085 the sum of $150,000.

Sec. 2. This act shall
become effective upon passage and approval.

________

CHAPTER 2, SB 2

Senate Bill No. 2Committee
on Commerce and Labor

CHAPTER 2

AN ACT relating to banks; authorizing a
bank holding company which is located in another state to acquire a bank in
Nevada; limiting the activities of the acquired bank; changing the limitation
on the permissible charge for a delinquent payment under a retail installment
contract; clarifying what charges may be established by contract; and providing
other matters properly relating thereto.

[Approved March 30, 1984]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE

AND ASSEMBLY, DO ENACT AS
FOLLOWS:

Section 1. Chapter 666 of
NRS is hereby amended by adding thereto the provisions set forth as sections 2,
3 and 4 of this act.

Sec. 2. The provisions of NRS 666.065 to 666.215, inclusive, and
sections 3 and 4 of this act do not apply to a bank holding company which:

1. Owns only
national banks within this state until such a holding company acquires or
applies for approval to acquire a bank licensed by the administrator.

2. Does not
control a bank which is located in Nevada but does control a bank in another
state until such a holding company acquires or applies for approval to acquire
any bank located in Nevada.

Sec. 3. 1. If a bank holding company which controls a
bank in another state applies for approval of the acquisition of a bank located
in Nevada, the administrator may approve the acquisition only if he determines
that:

(a) The bank being
acquired will be operated in a manner which is not likely to attract customers
from the general public in Nevada to the substantial detriment of financial
institutions located in Nevada;

(b) The acquisition is
fair;

(c) The acquisition is
not contrary to the public interest;

(d) The acquisition will
not create in Nevada an undue concentration of financial resources or a
substantial reduction of financial competition; and

(e) The economic advantages
of the acquisition to Nevada, in terms of employment and capital investment,
are adequate to permit approval.

2. Before giving
his approval pursuant to this section, the administrator shall:

(a) Enter into a written
agreement with the bank holding company setting forth the conditions of the
approval. The conditions must ensure that the bank holding company will not in
Nevada operate the bank in a manner which is inconsistent with the
determinations made pursuant to subsection 1.

(b) Within 10 days after
receipt of the proposal, give notice of it to all depository institutions
regulated by the division of financial institutions or by a counterpart agency
of the Federal Government which are located in this state. An institution may,
within 20 days after receiving the notice, submit a written protest against the
proposed acquisition. Within 30 days after receiving a written protest the
administrator shall set a date for a hearing on the protest and give notice of
the date of the hearing to the bank holding company and each institution which
submitted a protest, by registered or certified mail. The hearing must be held
not less than 30 days nor more than 60 days after this notice is mailed.

3. If the
administrator disapproves an application made pursuant to this section, he
shall provide the applicant a written statement of the reasons for disapproval
and the findings and conclusions upon which the disapproval is based. The
applicant may modify to application to obviate any objections to the
application. Unless a hearing has been conducted pursuant to subsection 2, the
applicant is entitled to a hearing to contest the disapproval.

4. A person who
conducts a hearing pursuant to this section must make a final decision within
30 days after the hearing.

Sec. 4. 1. A bank holding company which controls a bank
in another state may acquire only one bank which is located in Nevada.

If approved by the administrator, the
acquisition is subject to the following conditions:

(a) The total capital
stock of the bank to be acquired must be at least $5,000,000.

(b) The acquired bank may
not hold a license pursuant to chapter 677 of NRS.

(c) Except as further
limited in paragraph (d), the acquired bank must not solicit loans, deposits or
other financial business from residents of Nevada unless the solicitation is
part of a general solicitation which is also directed to residents of other
states.

(d) The acquired bank may
not solicit commercial loans in Nevada. The acquired bank may make a loan:

(1) At the request
of another financial institution which will also lend money to the person who
will receive the loan; or

(2) To another
financial institution.

2. For the
purposes of this section:

(a) If the acquired bank
is prohibited from soliciting a type of business, then the bank holding company
and its subsidiaries are also prohibited from soliciting such business for the
acquired bank.

(b) Solicit means to
request a person to engage in an activity or transaction or to advertise a
desire to engage in such conduct.

Sec. 5. NRS 666.065 is
hereby amended to read as follows:

666.065 As used in NRS 666.065 to
666.215, inclusive, and sections 2, 3 and 4 of this act,
unless the context otherwise requires:

1. To acquire a
bank means to obtain control of an existing bank or to establish a new bank.

2. Bank
holding company means a company:

(a) Which directly or indirectly owns or
controls 25 percent or more of the voting stock of a bank ;[licensed by the
administrator;]

(b) Which controls the election of a majority of
the directors of a bank; or

(c) For the benefit of whose stockholders 25
percent or more of the voting stock of a bank is held by one or more trustees.

[2.]3. Business trust means an organization
in which a business or property is conveyed to trustees who manage the business
or property for the benefit of the holders of the beneficial interest in the
trust. The term does not include a voting trust.

[3.]4. Company means any corporation,
business trust, association or similar entity, but does not include:

(a) A natural person; or

(b) A corporation of which a majority of the
stock is owned by the United States or any state.

Sec. 6. NRS 666.075 is
hereby amended to read as follows:

666.075 1. There is a
rebuttable presumption that a company which directly or indirectly owns,
controls or has the power to vote less than 5 percent of the voting stock of a
bank does not control the bank.

2. An estate, trust, guardianship or
conservatorship is not by virtue of its ownership or
control of stock of a bank a bank holding company unless it is:

of its ownership or control of stock of a bank a bank
holding company unless it is:

(a) A business trust; or

(b) A voting trust which by its terms or by law
does not expire within 10 years after the date of its establishment.

3. A company is not a bank holding
company by virtue of its ownership or control of stock which:

(a) Was acquired in the ordinary course of
securing or collecting a debt which the company previously contracted in good
faith; and

(b) Is held only as long as is necessary to sell
the stock on a reasonable basis.

[4. A bank
holding company which is domiciled outside of Nevada and which does not control
a bank licensed by the administrator is not under the jurisdiction of this
state until it applies for approval to acquire control of such a bank. A bank
holding company which is domiciled outside of Nevada must receive the approval
of the administrator before acquiring control of a bank licensed by the
administrator.]

Sec. 7. NRS 666.205 is
hereby amended to read as follows:

666.205 1. The administrator
may apply to the district court for an order compelling compliance with any
provision of NRS 666.065 to 666.195, inclusive [.], or section 3 or 4 of this act. The court may
award the administrator the costs of bringing the action and attorneys fees.

2. The administrator may bring an action
against a person who violates a court order or injunction issued pursuant to
this section or NRS 666.065 to 666.195, inclusive, or
section 3 or 4 of this act to recover a civil penalty of not more than
$10,000 for each violation.

3. The
administrator may bring an action to require a bank holding company which
acquired a bank in Nevada pursuant to section 4 of this act to divest itself of
all interest in the acquired bank if the bank holding company violates:

(a) An order to cease and
desist issued pursuant to NRS 666.175; or

(b) A court order or
injunction issued pursuant to this section, NRS 666.065 to 666.195, inclusive,
or section 3 or 4 of this act.

Sec. 8. NRS 666.215 is
hereby amended to read as follows:

666.215 Any person who willfully violates
any provision of NRS 666.145 shall be punished by imprisonment for not less
than 1 year nor more than 6 years, or by a fine of not more than $5,000, or by
both fine and imprisonment. Any person who willfully violates any provision of
NRS 666.065 to 666.135, inclusive, or 666.155 to 666.205, inclusive, or section 3 or 4 of this act is guilty of a gross
misdemeanor.

Sec. 9. NRS 97.155 is hereby
amended to read as follows:

97.155 Time price differential, however
denominated or expressed , means the amount which
is paid or payable for the privilege of purchasing goods or services to be paid
for by the buyer in installments over a period of time [.], and includes all charges incident to investigating and making the retail installment contract or
charge agreement.

investigating and making the retail
installment contract or charge agreement. It does not include the
amount, if any, charged for insurance premiums, annual membership fees for
credit cards, delinquency charges, attorneys fees, court costs ,[or]
official fees [.]or any other fees or charges to which the parties may agree.

Sec. 10. NRS 97.195 is
hereby amended to read as follows:

97.195 The amount of the time price
differential in any retail installment contract may be any amount agreed upon
by the parties. Such a contract may provide for:

1. A delinquency charge on any
installment delinquent 10 days or more in the amount of [5]8 percent of the installment or $2, whichever is
greater, but not more than [$5]$15.

2. Reasonable collection costs and
attorneys fee in the event of delinquency.

3. The imposition
of any other fee, expense or charge to which the parties may agree.

Sec. 10.5. NRS 97.245 is
hereby amended to read as follows:

97.245 1. The [rate of a time price differential on any deferred
balance is a matter for negotiation between a seller and buyer.]amount of the time price differential in any retail charge
agreement may be any amount, and the agreement may provide for the imposition
of any fee, expense or charge, agreed upon by the parties.

2. At or
before the time a retail charge agreement is made the seller shall advise the
buyer in writing, on the application form or otherwise, or orally, that a time
price differential will be computed on the outstanding balance for each month
(which need not be a calendar month) or other regular period agreed upon, the
schedule or rate by which the time price differential will be computed, and
that the buyer may at any time pay his total unpaid balance. If such information
is given orally, the seller shall, upon approval of the buyers credit, deliver
to the buyer or mail to him at his address a memorandum setting forth such
information.

[2.]3. The seller or holder of a retail charge
agreement shall promptly supply the buyer with a statement as of the end of
each monthly period (which need not be a calendar month) or other regular
period agreed upon, in which there is any unpaid balance thereunder. The
statement must set forth the following:

(a) The unpaid balance under the retail charge
agreement at the beginning and end of the period;

(b) Unless otherwise furnished by the seller to
the buyer by sales slip, memorandum or otherwise, a description or
identification of the goods or services purchased during the period, the cash
sale price and the date of each purchase;

(c) The payments made by the buyer to the seller
and any other credits to the buyer during the period;

(d) The amount, if any, of any time price
differential , fee, expense or charge for the
period; and

(e) A legend to the effect that the buyer may at
any time pay his total unpaid balance.

Sec. 11. NRS 99.050 is
hereby amended to read as follows:

99.050 Parties may agree for the payment
of any rate of interest on money due or to become due on any contract, [and] for the compounding of interest if
they choose [.], and for any other charges or fees. The parties shall
specify in writing the rate upon which they agree, [and]
that interest is to be compounded if so agreed [.], and any other charges or fees to which they have
agreed.

Sec. 13. 1. The
legislature intends to allow a bank holding company which controls a bank in
another state to acquire a bank in Nevada only under the conditions and
limitations imposed in sections 1 to 8, inclusive, of this act, and to this end
those provisions of this act are not severable. Except as provided in
subsection 2, if any provision of sections 1 to 8, inclusive, of this act, or
any application thereof to any person, thing or circumstance is held invalid,
the other provisions of sections 1 to 8, inclusive, of this act become
ineffective.

2. If a bank holding company has received
the administrators approval pursuant to section 3 of this act to acquire a
bank and a provision of sections 1 to 8, inclusive, of this act is subsequently
held invalid, the bank holding company may acquire the bank or maintain
ownership of it subject to the provisions of sections 1 to 8, inclusive, of
this act which can be given effect without the provision declared invalid by
the court. The approval given by the administrator remains effective if the
bank holding company and the bank continue to exercise only those powers
granted by this act.